News

Reform GASB accounting standards

December 1, 2020

Truth in Accounting is in the midst of its biggest-ever campaign for accountability and transparency in governmental accounting. For the next few months, we will be dedicating the Friday edition of Morning Call to our focus on challenging the Governmental Accounting Standards Board to revise their standards for government accounting and financial reporting.

What’s at Stake

Currently, state and local governments use “modified accrual accounting” methods, which is essentially a thinly disguised name for “cash basis accounting” for their budgeted funds.  This allows them to hide a lot of debt and their true financial condition and leads to misleading, so-called “balanced budgets” and “surpluses”--and subsequent bad decisions. Trouble is, they are not breaking the rules. The rules themselves are the source of deception. 

We Need Your Help

Send feedback to GASB to know that we’re watching and we demand change. We helped change government accounting standards before, and with your help, we can do it again. Click here to learn more and send a letter to GASB today.

 
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